Inflation mirroring the 70s

[OgNasty]

In the 70s it was the second wave of inflation that wrecked the economy. This one would propel Bitcoin in line with the 4-year cycle while slapping consumers with another massive price increase.

Will we see an inflation spike or will higher interest rates keep it under control?

[Filicius]

In the 70s it was the second wave of inflation that wrecked the economy. This one would propel Bitcoin in line with the 4-year cycle while slapping consumers with another massive price increase.

Will we see an inflation spike or will higher interest rates keep it under control?

This time it may be different. There are already serious altercations taking place in European cities, the most notorious in France from Paris to Marseille but which are spreading to many other municipalities in different countries, such as Milan or Barcelona, and which in principle seem to be motivated by a spirit of rebellion against the rising cost of living.

If these altercations escalate enough, governments all over the world may take steps to at least smooth future inflation and avoid a scenario like the one you remind us of.

[logfiles]

Will we see an inflation spike or will higher interest rates keep it under control?

We are already on the way to another inflation spike. The Gulf instability doesn't seem to be ending pretty soon and with the raised fuel prices, everything is going to continue going up. I am personally seeing the effect already in our country.
From Agricultural produces to all sorts of other commodities and services, things have never been the same again since the war started and there seems to be no hope to catch a breath for now. I believe the higher interest rates won't help that much.

[BitSofia]

What we want to see is the higher energy prices actually driving inflation within the economy (core inflation) and therefore wages. Inflation in the 1970s was a much deeper monetary issue so the oil shock is not the cause of the entire crisis. Higher interest rates will help reduce demand but cannot directly solve the supply shock. Issue is that higher interest rates for longer periods can also hurt economic growth. Even if inflation does increase again it doesnt necessarily mean that Bitcoin will follow the typical 4 year cycle and rise. Liquidity and market expectations are also important factors.

[AVE5]

Will we see an inflation spike or will higher interest rates keep it under control?

Inflation is what we know is bound to happen without even the governments that regulates the economy in other to control the inflations determine if inflations will lives or stays, if they've that influence, I think the inflation will totally be wiped off because, it's already a disaster that's affecting the economic market which even both the rich and the poor faces the economic hardship challenges that it's accompanied with the inflations.
What I'm saying here's that it's not of our position to decide or determine the possession of the inflation it's an economic event that happens naturally.
So definitely the inflation will spike making source of living more tighter for the lower classes while the riches and their savings in the banks remains vulnerable to go broke if they aren't investing because, the fiats will loose values.
Interest rates won't be enough too to solve the inflation threats.

[Ambatman]

 I really hope this don't happen but we might be heading towards this direction.
Because falling inflation doesn't even translate to falling prices of goods.
https://truflation.com/truman?mode=auto&web=on&source=marketplace_v2_summary&effort=medium&session_id=78c0846b-c68d-436b-83bd-e62c13f0c024

According to Truflation we currently above prior year as at today by 3.1%
Yeah I understand that it really does help Bitcoin price most of the time
Let's just hope the rate of increase would beat the rate of increase of inflation in our various demographic area.

[IjawMan]

Will we see an inflation spike or will higher interest rates keep it under control?

We are already on the way to another inflation spike. The Gulf instability doesn't seem to be ending pretty soon and with the raised fuel prices, everything is going to continue going up. I am personally seeing the effect already in our country.
From Agricultural produces to all sorts of other commodities and services, things have never been the same again since the war started and there seems to be no hope to catch a breath for now. I believe the higher interest rates won't help that much.

Government raises interest rate with the intension to cussion the effect of inflation on the economy and giving the government a form of control but in this case the more the interest rate is raise in each quarter the more the overall prices of goods and services continue to spike thereby defeating the effect of the rate raised.

All this rate raising will not do any much good in so much as the wars in various parts of the world remain in warring spirit. War does brings about unrest and causes the normal flow of products and services to slow down therefore causing scarcities in all sectors of the economy.

[Fortify]

In the 70s it was the second wave of inflation that wrecked the economy. This one would propel Bitcoin in line with the 4-year cycle while slapping consumers with another massive price increase.

Will we see an inflation spike or will higher interest rates keep it under control?

We have to be very careful when comparing data points in the past and trying to project the future. Sure, there happens to be correlation across that particular band of time and the world can often move in repeating cycles, but human development is always evolving. You just have to look at boom and bust to see that recessions/corrections can now be much shorter plus sharper to recover than they used to be. The advance of communication, namely the internet has allowed caused rapid changes to how communication works. Central banks also have a lot more information to work on and will take more active measures to combat inflation. However we have seen that people are creatures of habit and chase comfort in routine, even over decades, so we may see such patterns continue.

[OgNasty]

We have to be very careful when comparing data points in the past and trying to project the future. Sure, there happens to be correlation across that particular band of time and the world can often move in repeating cycles, but human development is always evolving. You just have to look at boom and bust to see that recessions/corrections can now be much shorter plus sharper to recover than they used to be. The advance of communication, namely the internet has allowed caused rapid changes to how communication works. Central banks also have a lot more information to work on and will take more active measures to combat inflation. However we have seen that people are creatures of habit and chase comfort in routine, even over decades, so we may see such patterns continue.

There’s a saying for this… History doesn’t repeat itself, but it often rhymes.

[philipma1957]

the inflation was done in the 70's tricky dick then Carter

it was done in the 00's Bush and Bush

it is being done now in the 20's by Trump Maga

in all cases it is done to hurt the poor and the middle class

[General_Bitcoin]

Will we see an inflation spike or will higher interest rates keep it under control?

There are mixed signals here. With the US CPI coming in higher for September 3.7% up from 3.4% in August. Much of the rise is in Gasoline prices. The core inflation is looking lower than headline. So we are seeing more of an energy price shock at the moment. However, this does mean that if the second wave of the 70s only ended once the Fed had increased rates to near 20% in 1981. We should also consider how much energy prices will begin to feed through into wages. This may mean we need a higher rate.